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Immediate release
Ottawa, June 5, 2006
2006-022

Archived - Official International Reserves

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.


The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$31 million during May to US$35,685 million.

Details on the level and composition of Canada's reserves as of May 31, 2006, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted.


Foreign Currency Reserves
Securities 29,602
Deposits   3,960
Total securities and deposits (liquid reserves) 33,562
Gold1 71
Special drawing rights (SDRs) 949
Reserve position in the IMF   1,103
Total:  May 31, 2006 35,685
           April 30, 2006 35,716
Net change -31

Details on Deposits

Other central banks/Bank for International Settlements

1,002

Banks headquartered in Canada

0

  Of which: located abroad

0

Banks headquartered abroad

2,958

  Of which: located in Canada

       0

Total

3,960

Details of Net Change
Reserves management operations2 -354
Gains and losses on gold sales 0
Net investment gains and losses

   Return on investments3

136

   Foreign currency debt charges

-70

   Revaluation effects4

257
Net government operations5 0
Official intervention 0
Other transactions      0
Net change -31

Currency Composition of Deposits and Securities

US dollars

17,847

Euro

15,184

Yen      531

Total

33,562


Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)
0-1
month
1-3
months
3-12
months
Total

Foreign currency securities6 Principal -795 -1,359 -1,598 -3,752
Interest -369 -167 -740 -1,276
Aggregate short forward positions 
in foreign currencies vis-à-vis 
Canadian dollar
0 0 0 0
Aggregate long forward positions 
in foreign currencies vis-à-vis
Canadian dollar
        0         0         0         0
Total net drains -1,164 -1,526 -2,338 -5,028

Additional Information (Nominal Value)
Undrawn, unconditional credit lines 
with banks headquartered outside Canada
6,000
Securities lent under repurchase agreements7 -2,530
Securities held under repurchase agreements8 1,658
Financial derivatives assets (net, marked to market)
  Forwards 0
  Swaps 3,096

Notes:
  1. There were no sales of gold settled in May. On May 31, gold holdings stood at 0.1 million ounces. The valuation is based on the May 31, 2006, London p.m. fix of US$653.00 per ounce.
  2. Net change in securities and deposits resulting from foreign currency funding activities of the Government. (Issuance of foreign currency liabilities used to acquire assets increases reserves, while maturities decrease reserves). During May, Canada bills decreased by US$786 million to a level of outstanding bills of US$1,715 million. Cross-currency swaps of domestic obligations raised an equivalent of US$432 million.
  3. "Return on investments" comprises US$106 million of interest earned on investments and a US$30-million increase in the market value of securities resulting from changes in interest rates.
  4. "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. In May, the revaluation effect was mainly due to the appreciation of the euro.
  5. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.
  6. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.
  7. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves.
  8. Cash invested under repurchase agreements is included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves.

Future Release Dates

The next release is July 6, 2006 (covering the period June 2006).

A list of upcoming release dates is posted on the Department of Finance website located at www.fin.gc.ca/invest_x/releaseDates_e.asp.

____________________________________
For further information, media may contact:

Sandra Lavoratore
Financial Markets Division
Department of Finance
613 947-3919

David Gamble
Media Relations
Department of Finance
613 996-8080 

For further information on the Exchange Fund Account, please consult the 2004 Report on the Management of Canada's Official International Reserves, located at www.fin.gc.ca/toc/2005/oir05_-eng.asp.

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada website at www.fin.gc.ca/scripts/register-eng.asp

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Official International Reserves

(10-Year Synopsis)


US dollars Other currencies Gold SDRs IMF position Total

(millions of US dollars)
May 31, 2006 17,847 15,715 71 949 1,103 35,685
April 30, 2006 18,660 14,997 70 931 1,058 35,716
March 31, 2006 20,204 13,812 63 917 1,038 36,034
February 28, 2006 16,707 13,974 61 908 1,034 32,684
January 31, 2006 16,813 14,135 62 907 1,042 32,959
December 31, 2005 16,842 13,822 56 897 1,401 33,018
November 30, 2005 16,646 14,566 54 894 2,039 34,199
October 31, 2005 16,909 14,214 51 898 2,142 34,214
September 30, 2005 16,725 13,824 52 900 2,098 33,599
August 31, 2005 16,878 14,354 47 907 2,113 34,299
July 31, 2005 16,241 14,050 47 890 2,101 33,329
June 30, 2005 17,303 14,196 48 893 2,484 34,924
May 31, 2005 16,785 14,483 45 904 2,817 35,034

Dec. 31, 2004 14,426 15,740 48 925 3,327 34,466
Dec. 31, 2003 15,575 15,961 45 838 3,848 36,267
Dec. 31, 2002 17,946 14,739 205 712 3,567 37,169
Dec. 31, 2001 19,748 10,736 291 614 2,859 34,248
Dec. 31, 2000 21,692 7,327 323 574 2,508 32,424
Dec. 31, 1999 18,838 5,594 524 526 3,164 28,646
Dec. 31, 1998 15,907 4,004 122 1,097 2,297 23,427
Dec. 31, 1997 14,630 492 146 1,126 1,575 17,969
Dec. 31, 1996 17,521 507 155 1,168 1,227 20,578
Dec. 31, 1995 12,127 502 178 1,177 1,243 15,227
The May 31, 2005 information above was added to the electronic version of this news release on June 6, 2006.